Sacramento small business owners oppose possible wage increase

President Obama proposes a minimum wage hike

Historically, raising minimum wage has drawn opposition from many small businesses, like some of the locally owned Sacramento coffee shops owners who say it will hurt business.

President Barack Obama's proposal in his State of the Union address Tuesday night would boost the federal minimum wage to $9 an hour from $7.25. The minimum wage in California is $8.

The news had some local businesses chatting about the hike. Some said it would hurt business.

Saundra Dacre, with Espresso Metro in Land Park, said a $9 minimum wage would be problematic.

"I can't really see us staying afloat," Dacre said. "It would definitely be a scaling down of our business."

The White House, however, is looking to appeal to low-income workers, many of whom have seen wages remain relatively flat or even fall in the past decade.

The proposal is already being opposed by many Republicans and small businesses who say it could hurt their profits and their ability to stay open.

They say a bump in minimum wage would increase the cost of hiring at companies that employ low-wage workers. Faced with higher labor costs, these businesses can try to raise prices, layoff workers or cut their profits.

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